World Bank cuts China's 2012 growth forecast

By REUTERS
May 23, 2012 08:38

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

BEIJING - The World Bank cut its economic growth forecast for China this year to 8.2 percent from 8.4% on Wednesday and urged the country to rely on easier fiscal policy that boosts consumption rather than state investment to lift activity.

In a biannual East Asia and Pacific economic update, the World Bank said a slowing China will drag growth in emerging East Asia to two-year lows this year, but warned Europe's seething debt crisis could inflict even bigger damage if it worsens.

Sluggish US and European demand and a softening Chinese property market would combine to weigh on the Chinese economy in the near term, it said.

But if governments and central banks act in time to stabilize activity, economies should recover next year.

It said countries could further loosen monetary and fiscal policies to foster activity, but noted their room for maneuver is constrained by inflation risks that could spike when growth rebounds amid rising public debt now.

"The region's authorities should remain flexible to shift monetary policy gears should growth gain traction and inflationary pressures build up," the World Bank said.

Related Content

Breaking news
July 18, 2018
Nicaraguan police surround, attack anti-government stronghold

By REUTERS